Bill > HB1203

This bill amends the Illinois Income Tax Act to reduce the income tax rate for individuals, trusts, and estates from 4.95% to 4.85%. The change will take effect for taxable years beginning on or after January 1, 2025. Specifically, the bill modifies the existing tax rate structure by inserting new provisions that lower the tax rate for individuals, trusts, and estates. For tax years beginning prior to January 1, 2025 but ending after December 31, 2024, taxpayers will pay 4.95% for the period before January 1, 2025, and 4.85% for the period after December 31, 2024. The bill also makes a conforming change to the pass-through entity tax rate, ensuring that the entity-level tax rate for partnerships and S corporations will match the new individual income tax rate. This tax rate reduction is part of ongoing efforts to adjust Illinois' income tax structure, continuing a trend of incremental rate changes that have occurred over the past decade.

Budget and Finance

https://www.ilga.gov/legislation/BillStatus.asp?DocNum=1203&GAID=18&DocTypeID=HB&SessionID=114&GA=104